"The IMG has selected three merchant bankers for the issue and the roadshows will start next month," official sources told PTI.

Five bankers -- ICICI Securities, IDFC and Kotak Mahindra Capital, Edelweiss Financial Services and IDBI Capital -- had made presentations before the Inter-Ministerial Group (IMG) earlier this week.

The DoD would be conducting roadshows in Hong Kong, US and UK beginning June for EIL stake sale, sources said.

The government plans to disinvest 10 percent stake, or 3.36 crore shares of EIL through Further Public Offering (FPO) in the domestic market. Up to 5 percent of the public offering will be reserved for the employees of the company.

At the market price of around Rs 175 a share, the 10 percent stake sale could fetch about Rs 600 crore to the exchequer.

Sources said the issue would take at least another three months time to hit the market, since the merchant bankers would now conduct due diligence, following which the draft prospectus would have to be filed with market regulator Sebi for approval.

Government holds 80.40 percent in 'Miniratna' PSU EIL. In 2010, it had divested 10 percent of its stake in EIL through an FPO.

In January, government had decided to go for further disinvestment in consultancy major EIL through public offer.

The paid-up equity capital of the company, as on March 31, 2012 was Rs 168.47 crore.

EIL is a leading provider of design, engineering and project management and consultancy services firm for the hydrocarbon sector.

The government plans to raise Rs 40,000 crore by way of disinvestment in the current fiscal. The government has already lined up a host of companies, including Coal India, Indian Oil and Hindustan Aeronautics, for stake sale.